Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dollar rises against yen, Canadian dollar lower after BoC

Published 04/16/2014, 10:47 AM
Updated 04/16/2014, 10:47 AM
Dollar higher vs. yen, loonie; eyes on Yellen speech

Dollar higher vs. yen, loonie; eyes on Yellen speech

Investing.com - The dollar was higher against the yen on Wednesday following the release of slightly stronger than expected data on Chinese first quarter growth, while the Canadian dollar weakened following a dovish rate statement from the Bank of Canada.

USD/JPY was last up 0.33% to 102.25, from 101.90 on Tuesday.

Market sentiment was buoyed after official data released on Wednesday showed that China’s gross domestic product expanded at an annual rate of 7.4% in the first three months of 2014, slowing from 7.7% in the fourth quarter, but slightly ahead of expectations for growth of 7.3%

The euro was little changed against the dollar, with EUR/USD edging up 0.06% to 1.3824, while USD/CHF edged up 0.07% to 0.8807.

In the euro zone, data confirmed that the annual rate of inflation slowed to 0.5% in March from 0.7% the previous month, the lowest since November 2009. The weak data added to pressure on the European Central Bank to take fresh steps to stave off the risk of deflation in the region.

Elsewhere, the pond was trading close to four-year highs against the dollar, with GBP/USD up 0.46% to 1.6802, not far from the peaks of 1.6821 struck on February 17.

The pound’s gains came after data showed that the U.K. unemployment rate fell to a five year low of 6.9% in the three months to February, bolstering the outlook for the wider economic recovery.

The U.S. dollar rose to session highs against the Canadian dollar, with USD/CAD advancing 0.20% to 1.1000 after the BoC left rates on hold at 1.00% and said the timing and direction of the next change to the policy rate will be data dependent.

New Zealand’s dollar fell to one-and-a-half week lows, with NZD/USD down 0.39% to 0.8610 after data showed that the annual rate of inflation in New Zealand slowed in the first three months of 2014.

The Australian dollar was almost unchanged, with AUD/USD edging up 0.15% to 0.9376.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was steady at 79.85.

In the U.S., data on Wednesday showed that industrial production rose 0.7% in March, ahead of expectations for a 0.5% increase.

A separate report showed that U.S. housing starts rose less than expected in March, while building permits fell, pointing to underlying weakness in the housing sector.

Market watchers were looking ahead to a speech on monetary policy by Fed Chair Janet Yellen in New York later in the trading day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.